Hi Paul - This new ETF sounds interesting. Here is the Fact Sheet: etfdb.com
Re: UBS Launches New Natural Gas MLP ETN (MLPG)
MLPG - E-TRACS Alerian Natural Gas MLP Index Fact Sheet
MLPG Tracks This Index: Alerian Natural Gas MLP Index
Description: The index provides investors with a benchmark for the infrastructure component of the natural gas industry. Constituents earn the majority of their cash flow from the transportation, storage, and processing of natural gas and natural gas liquids.
* Issuer: UBS
* Expense Ratio: 0.85%
* ETFdb Category: Energy Equities
* ETF Home Page: ibb.ubs.com
The investment seeks to replicate, net of expenses, the Alerian Natural Gas MLP Index. The index is an equal-weighted composite of the 15 largest natural gas infrastructure Master Limited Partnerships by market capitalization. The index, whose constituents earn the majority of their cash flow from the transportation, storage, and processing of natural gas and natural gas liquids, provides investors with a benchmark for the infrastructure component of the natural gas industry.
More Juicy Yields
Similar to other MLP products to hit the market, MLPG will likely lure investors with an attractive current return. According to the issuer web site, the current annual index yield recently stood around 6.6%. With interest rates expected to remain near record lows for the foreseeable future and cash-strapped companies reeling in dividends, investors have begun looking elsewhere for securities that can offer an attractive current return.
Top 10 Constituent weightings
Name Ticker Weight
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Copano Energy LLC-Units CPNO 7.00%
Spectra Energy Partners LP SEP 6.87%
Targa Resources Partners LP NGLS 6.80%
Duncan Energy Partners LP DEP 6.80%
Boardwalk Pipeline Partners BWP 6.74%
TC Pipelines LP TCLP 6.74%
ONEOK Partners LP OKS 6.71%
Energy Transfer Partners LP ETP 6.70%
Enterprise Products Partners EPD 6.62%
Regency Energy Partners LP RGNC 6.54%
===============================================================
The expense ratio of 0.85% is less than TPZ at 0.95% but I am not too sure if their holdings are equivalent.
The TPZ yield is a bit higher at 6.9% vs 6.6% for the MLPG ETF.
It appears that TPZ trades more shares and may have better liquidity than MLPG but this is a new ETF and probably has not been discovered yet.
I was alerted to MLPG from Dale's 50% Gains Investing thread ( Message 26680068 ). He started a new position in it today.
What do you think about the MLPG fund?
EKS |
